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Bank of England cuts rates

Thursday, August 04, 2016 - 01:26

The Bank of England cuts interest rates for the first time since 2009 and says it will buy 60 billion pounds of government debt to ease the blow from Britain's June 23 vote to leave the European Union. (ROUGH CUT ONLY - NO REPORTER NARRATION)

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The Bank of England cuts interest rates for the first time since 2009 and says it will buy 60 billion pounds of government debt to ease the blow from Britain's June 23 vote to leave the European Union. (ROUGH CUT ONLY - NO REPORTER NARRATION) (SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "The MPC agreed an exceptional package of measures, comprising a 25 basis point cut in Bank Rate to 0.25%; a new Term Funding Scheme to reinforce the pass-through of that cut in Bank Rate to the borrowing rate actually faced by households and businesses; a new programme of private sector asset purchases with up to £10 billion of UK corporate bonds; and a £60 billion expansion of gilt purchases. We took these steps because the economic outlook has changed markedly with the largest revision to GDP forecasts since the MPC was formed almost two decades ago. Early indicators are consistent with the risk identified before the vote and we now face a trade off between the amount of support we give the economy on the one hand and how fast we return inflation to target on the other." "The MPC expects several factors to weigh on investment and on employment and consumer spending. These include a protracted period of heightened uncertainty, weaker activity in residential and commercial and higher cost of capital for UK-focused firms." STORY: The Bank of England cut interest rates for the first time since 2009 on Thursday (Aug 4) and said it would buy 60 billion pounds of government debt to ease the blow from Britain's June 23 vote to leave the European Union. The central bank said it expected the economy to stagnate for the rest of 2016 and suffer weak growth throughout next year.

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Bank of England cuts rates

Thursday, August 04, 2016 - 01:26